KBRA Releases Research – Structured Credit Trend Watch: The First Cut Is Behind Us
KBRA Releases Research – Structured Credit Trend Watch: The First Cut Is Behind Us
NEW YORK--(BUSINESS WIRE)--KBRA releases research examining trends across the structured credit landscape. It has been a banner year for broadly syndicated loans (BSL) and middle market collateralized loan obligations (CLO). With approximately $146 billion of new issuance year-to-date (YTD), 2024 has already eclipsed the full-year (FY) 2023 new issuance total of $115 billion. The market for floating rate issuers should further benefit from the Federal Open Market Committee’s (FOMC) 50-basis point (bp) cut to the federal funds rate on September 18. Cheaper funding costs for floating rate liability structures can make arbitrage dynamics more attractive (assuming stable loan spreads). With inflation cooling and additional rate cuts projected well into 2025, the backdrop for underlying corporate borrowers—which have been burdened by elevated borrowing costs for the better part of the past few years—is constructive.
The report provides an overview of the overall structured credit market, including new issue deal volume, benchmark spread levels, notable activity, and other trends through Q3 2024. In addition, we provide a recap of KBRA’s 2024 rating and surveillance activity
Click here to view the report.
Related Publications
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- Navigating U.S. CLO Tail Risk
- Private Credit: Q2 2024 Middle Market Borrower Surveillance Compendium–EBITDA to the Rescue
- Structured Credit Trend Watch: CLO Issuance in Bloom—First-Quarter Record for Middle Market
- European CLOs: Too Big to Hold?
- Navigating European CLO Tail Risk: Mind the Amortisation Gap
- Private Credit: Potential for European MM and Direct Lending CLOs
- European CLO Manager Style Comparisons: April 2024 Update
About KBRA
KBRA is a full-service credit rating agency registered in the U.S., the EU, and the UK, and is designated to provide structured finance ratings in Canada. KBRA’s ratings can be used by investors for regulatory capital purposes in multiple jurisdictions.
Doc ID: 1006167
Contacts
Sean Malone, Managing Director, Co-Head of Global Structured Credit
+1 646-731-2436
sean.malone@kbra.com
Gabriele Gramazio, Senior Director
+44 20 8148 1001
gabriele.gramazio@kbra.com
Eric Hudson, Senior Managing Director, Co-Head of Global Structured Credit
+1 646-731-3320
eric.hudson@kbra.com
Eric Thompson, SMD, Global Head of Structured Finance Ratings
+1 646-731-2355
eric.thompson@kbra.com
Media Contact
Adam Tempkin, Director of Communications
+1 646-731-1347
adam.tempkin@kbra.com
Business Development Contact
Jason Lilien, Senior Managing Director
+1 646-731-2442
jason.lilien@kbra.com
